(Reuters) - French banks are likely to stand pat and resist the fresh wave of capital increases across the sector ahead of Europe-wide stress tests this year, helped by a protective regulator and benign borrowing costs.
In recent weeks, several banks including Italy's Intesa Sanpaolo and Germany's Commerzbank have announced plans to tap shareholders for fresh equity ahead of tougher incoming capital rules under the "Basel III" regime.
But French lenders such as BNP Paribas and Societe Generale -- which report first-quarter results on Wednesday and Thursday respectively -- are seen sticking to their guns and refusing to take part in the race for cash, thanks in part to the Bank of France's support.
"There is less need for the regulator to ask French banks to carry surplus capital (than in other countries)," said Yohan Salleron, fund manager at Mandarine Gestion, with 1 billion euros ($1.5 billion) under management. "Their business model is less risky ... and they have sizeable deposits."
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